Is it time to review your Life Insurance policy?

By Blanke Schein Wealth Management on June 1, 2018

Provided by HighTower Palm Desert

Life insurance is hard.

It’s hard to know if you have the right kind. It’s hard to know if you have enough. And it’s hard to know if you need any at all.

The insurance companies have made it even harder by coming up with bewildering names: whole life, term life, universal life. Some life insurance policies have a cash value, while others do not. Some invest that cash value in the stock market, while others pay a fixed rate of interest.  Some insurance policies combine all of these ideas.

A recent study by life insurance advocacy group LIMRA discovered that 80% of Americans overestimate the cost of affordable term life insurance – especially millennials, some of whom think the premiums are 200% higher than they really are. How much would a healthy 30-year-old pay per year to keep up a 20-year, $250,000 term life policy? When LIMRA posed that question to consumers, the median response was $400. In reality, the annual premiums are commonly less than $200.1,2

This is why it is important for you to sit down annually with an insurance professional to review how your policy works and how it will help you to protect your family.

When you’re young, a certain type of policy is needed. As you raise a family and take on more responsibilities, your needs change again. At some point, when the nest is empty or other life changes occur, you may not need life insurance at all – or alternately, you may desperately need it to protect your estate for your heirs.

Reviewing your life insurance policies is one way to make sure you have the coverage that is right for you and your family now – not when you bought it.

When is the last time you thought about your life insurance? Is it time to take another look?

Robert L. Schein, AIF
Partner, Managing Director
HighTower Palm Desert
The Blanke Schein Group

Citations.

1 – blog.intelliquote.com/the-way-most-people-think-about-life-insurance-rates-is-broken [4/25/16]
2 – nerdwallet.com/blog/insurance/new-rules-mean-lower-life-insurance-rates/ [3/6/17]

Your goals and dreams change. Financial products do not. Clients work with us because we don’t sell products – we create customized plans based on each client’s goals, and we continuously reevaluate client plans to ensure they are aligned with changing needs. Our clients rely on us to help protect their futures, and we take their trust to heart.

HighTower Advisors do not provide tax or legal advice. This material was not intended or written to be used or presented to any entity as tax advice or tax information. Tax laws vary based on the client’s individual circumstances and can change at any time without notice. Clients are urged to consult their tax or legal advisor before establishing a retirement plan.

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